If you have to pay towards the cost of your residential accommodation, your income should not fall below the ‘personal expenses allowance’ (PEA). The personal allowance is currently £24.90 a week.

Sometimes, you may be left with more than the PEA. For example, if you have children to care for, or to pay for the upkeep of a property that has been disregarded.

Example- Sue's Story

Sue lives in accommodation which costs the local authority £400 a week. She has £204.40 a week in income and £19,000 savings. This means that the local authority regard her as having £20 tariff income. This makes her total income £224.40 per week. Because the local authority has to leave Sue with at least £24.40 to live on, she will have to pay £200 a week towards the cost of her residential care. The local authority would pay £200 which is the whole cost of her care. This will leave Sue with £24.40 to spend on personal items every week, although she would be in effect using her savings to make up her personal allowance.